Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
1997
Effective Start Year: 
1997
Effective End Year: 
2011
Scope: 
National
Document Type: 
Law
Economic Sector: 
Power
Energy Types: 
Power
Issued by: 
The government of Lao People's Democratic Republic
Overall Summary: 
The Electricity Law was issued in 1997 and its purpose is to establish systematic standards in i.e. administration, production, transmission, distribution, and to manage tile exports arid imports through tile most effective use of natural resources in pursuit of improving tile national economy, society, and the living standards of the people.
Access
Energy access priorities: 
The government encourages every economic sector to invest in the production of electricity, to meet the consumption demand among ethnic minorities in urban and in rural areas [...]. --- The government encourages electricity Development in local and rural areas, which would support the local manufacturing and living conditions of residents in remote areas.
Energy access action plan: 
The government facilitates funds and loans to support tile construction, installation, and electricity development in the local and rural areas.
Renewable Energy
RE priorities: 
The government supports investment in electricity operation, especially hydroelectricity, which makes efficient use of water basins as energy from natural resources.
Environment
Energy environmental priorities: 
Operation of electricity production shall begin with a survey and project output and shall include the construction and expansion of the facilities, which ensure that such economic enterprise does not damage the environment, ecological system, living conditions, and natural habitat of wildlife.
Pricing
Energy pricing: 
Pricing of electricity shall be based on social-economic conditions and the current costs of living of the people, as specified in one of the following categories: 1. Prices for exports and imports; 2. Prices for domestic consumption in support of tire manufacturing industry acrd agriculture; 3. Prices for remote villagers; 4. Prices for general services. The government shall set prices for different categories periodically.
Energy Supply and Infrastructure
Cross-border energy infrastructure: 
Transmission of Electricity through Lao PDR refers to the transmission of electricity from a foreign country through the territories of Lao PDR to a foreign country in accordance with the agreement of the government of Lao PDR. Such transmission shall go through Lao national grid, except where such facilities in Lao PDR are not available. When facilities are lacking, the government of Lao PDR shall allow temporary permission for foreign suppliers to build such transmission facilities under 'the supervision and inspection by related authorities of Lao PDR.
Trade
Energy trade priorities: 
The government encourages every economic sector to invest in the production of electricity, [...] to expand the nation's export capacity. --- The government of Lao PDR encourages the production of electricity for exports while maintaining sufficient supplies of electricity to support the domestic industries and the social economic development of the country.
Advance rulings: 
Imports of electricity into Lao PDR are allowed only in cases of necessity for tire national social economic development with the government's approval.
Investment
Energy sector investment priorities: 
The government supports investment in electricity operation, especially hydroelectricity, which makes efficient use of water basins as energy from natural resources.
Financial incentives for energy infrastructure: 
The government facilitates funds and loans to support tile construction, installation, and electricity development in the local and rural areas. Funds for electricity development in the local and rural areas are from the following sources: 1. tile national budget; 2. state-private joint venture; 3. partnership; 4. private investors; 5. domestic and international grants. In addition, the government may allow exemption or reduction of taxes and may provide benefits of mobilization of equipment and materials essential for construction and operation of electricity in the local and rural areas. --- Persons or organizations with outstanding performances in the operation of electricity enterprise and protection of the environment shall receive awards and other benefits such as credits, extension of license, or others.
Tax and duty exemptions for energy equipment: 
[...] the government may allow exemption or reduction of taxes and may provide benefits of mobilization of equipment and materials essential for construction and operation of electricity in the local and rural areas.
Investment climate development: 
The government encourages every economic sector to invest in the production of electricity, to meet the consumption demand among ethnic minorities in urban and in rural areas.---The government supports foreign investment in the production, distribution, exports, imports, and development of electricity, in accordance with the Law for Promotion and Management of Foreign Investment in Lao PDR.
Governance
National policy structure: 
Electricity Law: The purpose of Electricity Law is to establish systematic standards in i.e. administration, production, transmission, distribution, and to manage tile exports arid imports through tile most effective use of natural resources in pursuit of improving tile national economy, society, and the living standards of the people.